KKR is more than ready to fork over more cash to trigger growth at AppLovin. The firm “look[s] forward to supporting the expansion of [AppLovin’s] global mobile gaming platform through continued investment,” said Herald Chen, KKR’s head of tech, media and telecom, in a statement. Chen will join AppLovin’s board.
The investment also gives KKR a chance to bask in the reflected glow of a market growing at hyperspeed.
Mobile revenue, mainly driven by gaming, is a $70 billion market, according to a recent report from mobile market researcher Newzoo. AppLovin claims to drive more than 1 billion installs annually for its game studio clients.
But there’s another reason AppLovin was courting investors so soon after scooping its massive Orient Hontai debt investment.
Reuters reports that AppLovin, which is profitable, plans to earmark a portion of the money it’s getting from KKR to buy back some of Orient Hontai’s stake and to possibly start it on the road to an IPO.
For the moment, however, AppLovin remains one of the largest independent mobile ad platforms out there.